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< BACK TO ALL REPORTS

Ugly reversal, but...

Jason Goepfert
2020-12-14

We've looked at the danger in relying on single-day price patterns many times before, and today's rejection gives another opportunity. The small-cap Russell 2000 fund, IWM, gapped up more than 1% to a 52-week high, then reversed more than 0.5% into the close. It looks ugly on a chart, and we saw earlier today just how stretched that index is. But this one-day reversal pattern hasn't been a bad omen when it has triggered before, and shouldn't be relied on to be bearish on its own except maybe on the shortest of time frames.


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